Foong family seeks Hexza MGO exemption
KUALA LUMPUR: Chemicals industry specialist Hexza Corp Bhd is seeking an exemption for the Foong family from undertaking a mandatory general offer (MGO).
Hexza Corp Bhd is requesting an exemption from the mandatory general offer (MGO) process for the Foong family, as the company's proposed dividend reinvestment could push their combined stake above the 33% threshold. The shareholder group currently owns 32.94% of Hexza, including a 30.62% stake through Summit Holdings. Datuk Dr Foong Weng Cheong, along with his son Foong Leon Chiew, serves as the executive chairman.
The company is set to distribute a final dividend of 7.5 sen per share for the fiscal year ending June 30, 2026. This dividend is eligible for reinvestment under Hexza's dividend reinvestment plan (DRP) if shareholders choose to invest the proceeds in new shares. If the major shareholders fully reinvest their entitlement while others opt for cash, their combined stake could rise to 34.90%, and potentially 35.36% at a higher issue price.
Hexza has requested an exemption from the Securities Commission, which will be subject to approval by non-interested shareholders at an extraordinary general meeting. The company does not anticipate any impact on its share capital, net assets, gearing, earnings, or earnings per share, though the DRP may cause some dilution of EPS based on participation.
Hexza has received approval to list up to 20.5 million new shares under the second DRP, subject to certain conditions. The exemption is anticipated to be finalized by the first quarter of 2027.
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